America’s Car-Mart Reports Diluted Earnings per Share of

ROGERS, Ark., Aug. 17, 2021 (GLOBE NEWSWIRE) — America’s Car-Mart, Inc. (NASDAQ: CRMT) at present introduced its working outcomes for the primary quarter of fiscal yr 2022.

“We continue to make foundational investments to our business model, and as expected, we are experiencing an increasing capacity to serve more customers at the highest levels. We ended the quarter with over 91,100 active customers, an increase of over 3% since the beginning of the fiscal year. For over 40 years, our customers’ lives have been better as part of the Car-Mart family, and we have an obligation to serve an ever-increasing customer base as we move forward. We have a unique place in the markets we serve as our customers rely on us to keep them on the road and give them peace of mind with local transportation needs. We believe that the significant investments we are making in the areas of Recruiting, Training and Retention, Inventory Procurement/Management, Customer Experience and Digital/Information Technology are already having positive effects and will allow us to continue to improve, grow and leverage our strengths,” stated Jeff Williams, President and CEO. “Our balance sheet has allowed us to take advantage of challenging market conditions and has allowed us to demonstrate how nimble we can be in this dynamic, quickly changing industry. We continue to transition from a collections-focused company to a sales company that is very good at collections, and our associates have embraced this shift and are enthusiastic about the opportunities for our company and for them individually. The past 18 months has been difficult, but the resiliency and strength of our 2,000+ associates and their dedication to our Mission, Vision and Values has been inspirational. Our success is the direct result of their passion for the purpose in our daily work.”

“We ended the quarter with an average of 604 customers per dealership (up from 583 at April 30, 2021). As we have stated, we believe that most of our dealerships can support 1,000 or more customers at some point in the future. We have significant opportunities for growth by increasing customer count at our existing locations and we will continue to push for market share gains. In addition, we will continue to open new dealerships and look for acquisition opportunities in markets that align with our business. The infrastructure investments we are making are critically important to our growth plans as our high touch business model is focused on the customer experience journey, with the primary objective of keeping our customers on the road,” added Mr. Williams. “After the end of the quarter, we reached an agreement to purchase the retail finance operations of The Carman L.L.C. from Jake Haller in El Reno, Oklahoma. Jake has had a retail business for twenty years and has also been a vehicle vendor for Car-Mart and is currently one of our best preferred vendors. We are excited about this transaction which will provide us a new dealership and allow Jake to focus his talents on supplying us quality vehicles. Additionally, our new dealership in Norman, Oklahoma is nearing completion and we expect an opening during our second quarter.”

“Revenue increases were driven by a 20.4% increase in the average retail sales price and a 25.0% increase in units sold. Unit sales volume productivity increased 22.6% from the first quarter of 2021 and 16% from the first quarter of fiscal 2020. We made an additional investment in inventory to support the increase in retail units sold as we transition our focus on sales while continuing our history of collecting well. The increase in the average retail sales price put pressure on the overall gross profit percentage as our gross profit percentage generally decreases as the retail sales price increases in our pricing model. The total gross profit dollars per retail unit sold increased 10.7%,” stated Vickie Judy, Chief Financial Officer. “The increases in the average retail sales price have necessitated longer terms resulting in a reduction in collections as a percent of average finance receivables in line with the term increase. Our portfolio continues to perform well with net charge-offs for the quarter, as a percentage of average finance receivables, at 4.3% compared to 4.8% in the prior year quarter. While we continue to invest and improve our infrastructure, we were able to leverage selling, general and administrative expenses, which equaled 15.7% of sales in the current year quarter compared to 17.7% in the prior year quarter.”

“Our debt, net of cash, to finance receivables is 30.2%, compared to 25.4% at the end of the first quarter of fiscal 2021 and 28.0% at the end of first quarter of fiscal 2020. During the quarter, we added $80.9 million in receivables, increased inventory by $14.8 million, repurchased $11.6 million of our common stock, and funded $1.7 million in capital expenditures, a total of $109.0 million, with only a $46.1 million increase in debt, net of cash. We repurchased 81,742 shares of our common stock during the quarter at an average price of approximately $142,” added Ms. Judy.

Conference Call

Management can be holding a convention name on Wednesday, August 18, 2021 at 11:00 a.m. Eastern Time to debate quarterly outcomes. A dwell audio of the convention name can be accessible to the general public by calling (877) 776-4031. International callers dial (631) 291-4132. Callers ought to dial in roughly 10 minutes earlier than the decision begins. A convention name replay can be out there two hours following the decision for thirty days and will be accessed by calling (855) 859-2056 (home) or (404) 537-3406 (worldwide), convention name ID #9489631.

About America’s Car-Mart

America’s Car-Mart, Inc. operates automotive dealerships in twelve states and is one of the most important publicly held automotive retailers within the United States centered solely on the “Integrated Auto Sales and Finance” phase of the used automobile market. The Company emphasizes superior customer support and the constructing of robust private relationships with its clients. The Company operates its dealerships primarily in smaller cities all through the South-Central United States promoting high quality used automobiles and offering financing for considerably all of its clients. For extra details about America’s Car-Mart, together with investor displays, please go to our web site at www.car-mart.com.

This press launch incorporates “forward-looking statements” inside the that means of the Private Securities Litigation Reform Act of 1995. These forward-looking statements handle the Company’s future targets, plans and targets, in addition to the Company’s intent, beliefs and present expectations concerning future working efficiency and may usually be recognized by phrases comparable to “may,” “will,” “should,” “could,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” and different comparable phrases or phrases. Specific occasions addressed by these forward-looking statements might embrace, however will not be restricted to:

• new dealership openings;
• efficiency of new dealerships;
• identical dealership income progress;
• future income progress;
• receivables progress as associated to income progress;
• buyer progress;
• gross revenue per retail unit offered;
• rates of interest;
• future credit score losses;
• the Company’s assortment outcomes, together with however not restricted to collections throughout revenue tax refund intervals;
• seasonality;
• technological investments and initiatives; and
• the Company’s business, working and progress methods.

These forward-looking statements are based mostly on the Company’s present estimates and assumptions and contain varied dangers and uncertainties. As a consequence, you’re cautioned that these forward-looking statements will not be ensures of future efficiency, and that precise outcomes might differ materially from these projected in these forward-looking statements. Factors which will trigger precise outcomes to vary materially from the Company’s projections embrace, however will not be restricted to:

• normal financial circumstances within the markets by which the Company operates, together with however not restricted to fluctuations in fuel costs, grocery costs and employment ranges;
• business and financial disruptions and uncertainty which will consequence from the present outbreak of the Delta variant or any future hostile developments with the COVID-19 pandemic and any efforts to mitigate the monetary influence and well being dangers related to such developments;
• the expiration of present financial stimulus measures or different authorities help applications applied in response to the COVID-19 pandemic or the adoption of additional such stimulus measures or help applications;
• the supply of credit score services to assist the Company’s business;
• the Company’s potential to underwrite and acquire its contracts successfully;
• competitors;
• dependence on present administration;
• potential to draw, develop and retain certified normal managers;
• availability of high quality automobiles at costs that can be reasonably priced to clients;
• adjustments in shopper finance legal guidelines or laws, together with however not restricted to guidelines and laws which have lately been enacted or might be enacted by federal and state governments;
• potential to maintain tempo with technological advances and adjustments in shopper habits affecting our business;
• safety breaches, cyber-attacks, or fraudulent exercise; and
• the flexibility to efficiently determine, full and combine new acquisitions.

Additionally, dangers and uncertainties which will have an effect on future outcomes embrace these described every now and then within the Company’s SEC filings. The Company undertakes no obligation to replace or revise any forward-looking statements, whether or not because of this of new info, future occasions or in any other case. You are cautioned to not place undue reliance on these forward-looking statements, which communicate solely as of the dates on which they’re made.

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Contacts:   Jeffrey A. Williams, President and CEO (479) 464-9944 or Vickie D. Judy, CFO (479) 464-9944